Company has issued a 1 000 EUR loan to client on December 15. The

maturity of the loan is January 15. Total interest payable at maturity is 150 EUR. In addition, the client has to pay an upfront loan issuance commission in amount of 50 EUR.
1.      Provide balance sheet booking entries you will record in you accounting software on December 15. Show separate booking for each balance sheet line.
On December 31 your colleague asks you to see the clients file. He would like to see the balance of the loan and the revenue that company has earned on this loan so far. Assume that revenues are recognized linearly throughout the loan period.
2.      Calculate the revenues that must be recognized till 31 December and show all relevant bookings.
On the same day, December 31, the client has come to Company's office and made the following payments: 600 EUR for Principal; 100 EUR for interest.
3.      Show all bookings for these payments (showing debit and credit entries).